Which of the following is not allowed as an itemized deduction?

Gambling losses to the extent of gambling winnings

A subscription to the Wall Street Journal to help with personal investment decisions.

All are allowed as itemized deductions.

Interest expense on a $800,000 loan incurred in 2016 to buy a principal residence

Cash donation to a church

Fred and Lucy are married, ages 33 and 32, and together have AGI of $120,000 in 2019. They have four dependents and file a joint return. They pay $5,000 for a high deductible health insurance policy and contribute $2,600 to a qualified Health Savings Account.

During the year, they paid the following amounts for medical care: $9,200 in doctor and dentist bills and hospital expenses, and $3,000 for prescribed medicine and drugs. In October 2019, they received an insurance reimbursement of $4,400 for the hospitalization. They expect to receive an additional reimbursement of $1,000 in January 2020.

Determine the maximum itemized deduction allowable for medical expenses in 2019.

Use 7.5% of AGI not 10% for 2019.

$12,800

$0

$800

$3,800

$9,200

Brad, who would otherwise qualify as Fayes dependent, had gross income of $9,000 during the year. Faye, who had

AGI of $120,000, paid the following medical expenses this year:

Cataract operation for Brad $ 5,400

Brads prescribed contact lenses 1,800

Fayes doctor and dentist bills 12,600

Prescribed drugs for Faye 2,550

Total $22,350

Faye has a medical expense deduction of:

use 7.5% of AGI again....

$13,350

$10,350

$3,150

$4,940